Monday, December 24, 2007

Stock Market Weekly Comments for the Week Beginning December 24, 2007

Written by Raymond Merriman

Review and Preview

Financial Astrology doesn’t get much better than we witnessed last week. Saturn turning retrograde last Wednesday, followed by the beginning of the Moon’s transit in Taurus on Thursday, kept equity prices in check for most of the week. But by Friday, the restriction lifted, and stocks in the Western Hemisphere rallied swiftly. Not only stocks, but precious metals also rallied strongly following Saturn station last Wednesday. As stated in last week’s column, “One of the more important signatures in this cluster happens this Wednesday as Saturn turns retrograde. Saturn stations, along with Venus and Uranus stations, have the highest correlation of all planetary stations to important reversals in U.S. stock indices, as reported in “The Ultimate Book on Stock Market Timing Volume 3: Geocosmic Correlations to Trading Cycles.” As demonstrated therein, Saturn retrograde has a 65% correlation to primary cycles within an orb of 11 trading days, and a 70% correlation to 4% or greater reversals within only 4 trading days. That’s the statistics. The astrological observation is that any financial markets that are declining into Saturn stations have a high probability of bottoming and turning right back up again within a couple of trading days. And as one can see, there are a number of financial markets that are declining right now, including precious metals, currencies, treasuries, and stocks.” The low in the Dow Jones Industrial Average last week was at 13,092 on Tuesday. Even as late as Thursday morning, the DJIA was still trading around 13,150. But by Friday, the market closed over 300 points higher, at 13,470. On Friday alone, it was up 225 points.

Gold and Silver also struggled into Thursday of last week. Ion the case of Gold, the February contract made a low last Monday at 792.50, and re-tested it at 797.70 on Thursday. By Friday, it was nearly $20.00 higher. March Silver fell to a new low for this primary cycle at 1382 on Monday. By Friday it was up to 1456. Even the Treasuries got into the act. A couple of weeks ago this column outlined a trading set up via historical financial astrology studies only. In this discussion, it was pointed out that transiting Jupiter would enter Capricorn on December 18, and immediately form an opposition to Pluto and conjunction to the Sun in the Federal Reserve Board horoscope December 18-23. In the past two cases on record of this transit, treasuries made a peak or secondary peak before commencing a decline. A top was anticipated in that time frame, and sure enough on Thursday, December 20, March T-Notes made secondary peak at 113/24, up two whole points from their trading cycle low of one week ago, and only about a half-point off their multi-year high of December 4. Now let’s see if history follows the same pattern as before, and interest rates start to rise for a few months and Treasuries start to decline in value.

Short-Term Geocosmics

Saturn’s influence is over as of Wednesday of last week, and now we commence a Jupiter period through this week. As outlined in last week’s column, “The following week will find the Sun and Jupiter conjunct, and both in a rare opposition to Mars during the same week. As indicated before, Jupiter has tendency to expand or exaggerate things whenever it is in force, especially with Mars. So, even with the holidays talking place then, we might see large price swings. These signatures indicate the potential for either euphoria or panic. And since Jupiter and Sun conjunct the Federal Reserve Board’s natal Sun (and opposite its natal Pluto), and since the stock market is clearly showing its displeasure with the FED by declining, we may see yet another surprise rate cut before the holiday season is over. That would make everyone euphoric and in the holiday mood. And wouldn’t Bernanke, the Sagittarian, be the perfect person to be cast in the role of Santa Clause – especially after what happened this week?” Well Bernanke didn't lower interest rates again, but Central Banks did inject plenty of liquidity into the system (which is just as welcomed), especially in Europe, and this led to the huge rally by the end of the week. It would not be surprising to see this rally continue now into next week as we come to the end of the year.

One area of human activity that might be cause for concern is that Mars will also be quite active next two weeks, with its oppositions to the Sun, Jupiter, and then Pluto. This could coincide with an increase in hostilities, and perhaps even a military confrontation.

Longer-Term Thoughts

Last week I reported on the delayed effect the Saturn-Neptune opposition that was in effect August 2006 through June 2007. I mentioned how unethical and deceptive activities in business and government that took place then would probably not be fully revealed until 1-2 years afterwards, and how in fact some of those revelations are just coming to the surface now. So perhaps it was not too surprising to see a front page story on Friday’s “Wall Street Journal” titled: Fraud Seen as a Driver in Wave of Foreclosures. There were a lot interesting facts in that report that pertain the Neptune effect, including the following quotes: “Suspicious Activity Reports shot up nearly 700% between 2000 and 2006;” In 2006, losses from fraud could total a record $4.5 billion, a 100% increase from the previous year.” Arthur Prieston, chairman of the Prieston Group which provides mortgage fraud insurance, states “We’ve created a culture where a great many people know how to take advantage of the system.” The whole article is based on the idea that “Fraud goes a long way toward explaining why mortgage defaults and foreclosures are rocking financial institutions” today. But note how much fraud has increased since the Saturn-Neptune opposition was in effect. My point is that the fraud perpetrated then is coming to light now, and will continue to do so in the next 1-2 years. And it is not only in business that these revelations will take place, but also in governments.

But there is a positive side to Saturn and Neptune too. Just as it can rule deceit and fraud, it can also open the pathway for greater honesty, and a desire to act with honor and virtue. Saturn and Neptune together pertain to the understanding of a greater law, a universal or spiritual awareness that provides an inner sense of right versus wrong. And with this understanding comes an even greater awareness that one is ultimately accountable for whatever actions they initiate in the mundane world. These actions commence a cycle whose consequences are entirely related to the intention that led to each action. And thus it is that those who sought to gain at the expense of others by behaving deceptively to others –especially during the Saturn-Neptune opposition period – now have to bear the consequences of those fraudulent actions. On the other hand, those who chose instead to behave with a sense of honor and virtue during that same period, are also now bearing the consequences of those decisions. The difference is this: those who violated these universal principles may now be suffering, outwardly or inwardly. If outwardly, their freedoms may be on the verge of being taken away. And those who chose right behavior during those times of temptation, are now able to find an inner peace, as well as a sense of gratitude, for all things and all people in their life. And it is especially at times like this, when we enter the end of the year and the most sacred of all periods for many cultures (the winter solstice), when it is so easy to concentrate on those things for which to be thankful – even little things, like treating respectfully those you live with, befriend, work with, or do business with. And knowing that by consciously choosing to behave in this fashion, you contribute to making this planet a better place in which to co-exist with other souls who inhabit this same planet, at this same incredible time in history, with you.

Happy solstice, and happy holidays.

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